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Measurements Formula for the Production Department



Production measures are unique in that they involve very few financial inputs. Instead, most of the information from which they are derived is obtained from other sources, such as tracking systems for units of production, machinery utilization time, and scrap tracking. These systems may not be as tightly controlled as financial systems, so the data used for these measurements should be tested to ensure that it is of a sufficient quality to yield accurate information.

The measurements formula listed in this post fall into several categories: the utilization of key production constraints, also known as bottleneck operations; overall productivity and effectiveness; asset usage; and overhead expense utilization.


The measurements formula listed in this post include:

Constraint Productivity
Constraint Rework Percentage
Constraint Schedule Attainment
Constraint Utilization
Degree of Unbalance
Throughput Effectiveness
Break-Even Plant Capacity
Manufacturing Effectiveness
Productivity Index
Unit Output per Direct Labor Hour
Average Equipment Setup Time
Unscheduled Machine Downtime Percentage
Acceptable Product Completion Percentage
Work-in-Process Turnover Scrap Percentage
Warranty Claims Percentage
Maintenance Expense to Fixed Assets Ratio
Indirect Expense Index
Reorder Point
On-Time Delivery Ratio

Here is the measurement formula list:

Production Dept Measurement Formula-1

Production Dept Measurement Formula-2

Production Dept Measurement Formula-3

More measurement ratio formula you may want to know as well:

Asset Utilization Measurements (Ratios)

Operating Performance Measurements (Ratios)

Cash Flow Measurements (Ratios)

Liquidity Measurements (Ratio)

Capital Structure and Solvency Measurements (Ratios)

Return on Investment Measurements (Ratios)

Market Performance Measurements (Ratios)

Measurements and Ratios For Financial and Accounting Department

Measurements and Ratios For Engineering Department

Measurements and Ratios For Logistics Department

Measurements and Ratios For Sales Departments

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